Page 13 - Q3-2024-EN

AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
SEPTEMBER 30, 2023
(All amounts are in Kuwaiti Dinars)

3. Cash and cash equivalent
December 31,
September 30, 2022 September 30,
2023 (Audited) 2022
Cash on hand and at banks 5,544,119 6,282,329 6,015,609
Short term bank deposits (a) 10,432,497 - -
Cash at portfolios - 75,551 -
15,976,616 6,357,880 6,015,609
Less: Restricted bank balances (b) (1,365,063) (582,912) (580,845)
Cash and cash equivalents as represented for the
consolidated statement of cash flows 14,611,553 5,774,968 5,434,764

a) As at September 30, 2023, the effective interest rate on short-term bank deposits is 4.5% per annum. These deposits
have an average contractual maturity of 90 days.

b) Restricted bank balances represent escrow accounts restricted for receiving and making payments for specific
construction activities and as collateral for same bank facilities of the Group, which may not be available for use within
90 days.

4. Assets and liabilities held for sale.
a) Assets held for sale

Net assets and liabilities held for sale are as follows:
December 31,
September 30, 2022 September 30,
2023 (Audited) 2022
Kuwaiti Saudi Real Estate Investment Company – O.P.C. 15,222,255 14,906,477 15,614,500
15,222,255 14,906,477 15,614,500

During the year ended December 31, 2021, the Board of Directors of First Dubai Real Estate Development Company
K.S.C. (Public) (subsidiary) approved the disposal of all the shares of its subsidiary in the Kingdom of Saudi Arabia
(Kuwaiti Saudi Real Estate Investment Company – O.P.C.) against cash and in-kind consideration with a net amount
of KD 15,500,000. The assets and liabilities attributable to the subsidiary, have been classified as a disposal group held
for sale and are presented separately in the statement of financial position.

During the year ended December 31, 2022, that transaction was partially executed by transferring part of the in-kind
consideration to First Dubai Real Estate Development Company - K.S.C. (Public) (a subsidiary) by transferring
investment properties amounting to KD 10,125,000 along with an attached mortgage in favor of a local bank for an
amount of KD 6,000,000 which was included within the Islamic banking facilities of the Group In addition to a partial
payment of the cash consideration in the amount of KD 450,000. That had resulted in an obligation of KD 4,575,000
which was recorded under the Accounts payable and other credit balances till the completion of the remaining
transaction terms by both parties and recording the full financial impact in the consolidated financial statements at that
time.

10